Half-yearly report

Anglesey Mining plc                                      LSE:AYM

Chairman's statement and interim management report November 2008

The year to date has been dominated by the global economic slowdown,
particularly its effects on Chinese production and demand and the ensuing
downturn in worldwide commodity prices. This downturn has affected the share
price of most mineral companies. Fortunately with Labrador Iron funded, the
group is in a position to weather the current economic difficulties.

Labrador Iron Ore

Development at the group's 50% owned Labrador Iron project in Canada advanced to
a high level.  During the summer over 4,500 metres of reverse-circulation
drilling were completed together with a further 1,000 metres of hydro-geological
drilling. Work is now in progress on compiling updated resource estimates and a
detailed engineering and design study.

Some 6,500 tonnes of bulk sample were extracted from the first four deposits.
This material has been crushed and screened and is being shipped to the port of
Sept-Îles for onward delivery to potential end-users. Detailed engineering and
design work for the infrastructure and beneficiation systems has progressed
well. Arrangements for the rail transport and port facilities have also advanced
and the first ten ore transport cars have arrived on site.

Labrador Iron Mines had initiated environmental baseline studies in the region
at the start of exploration in 2005/2006. Since that time, seasonal
environmental studies, including work with elders of the various aboriginal
nearby communities, has been conducted to document the existing environment and
to include the collection of traditional knowledge in the environmental
assessment. In 2008 these programs were ramped up to meet the scope of the
proposed development. In April 2008, a Project Registration Application was
submitted for the first phase of development of the project to the Department of
Environment and Conservation in the Province of Newfoundland and Labrador and to
the Canadian Environmental Assessment Agency (CEAA). The Project Registration
Documentation addresses production from the first phase of the project, being
the James North, James South and Redmond properties. These properties have been
the subject of prior activity carried out by the Iron Ore Company of Canada and
are already partially developed.

On August 13, 2008 the Minister of Environment and Conservation requested an
Environmental Impact Statement (EIS) as part of the application process. On
October 29, 2008 the Minister published the draft guidelines for the preparation
of the EIS for public comment. The Minister is expected to publish the final
guidelines, which will include public consultation meetings, in early December.
The work necessary to complete this EIS is now being progressed and it is
expected that the EIS will be submitted prior to the calendar year end. On
submission the Minister will have a period of 70 days to review the EIS,
following which it should be submitted to the Cabinet for project approval. Upon
release of project approval, applications for the necessary operating permits
will be made. Assuming the operating permits are issued in the first or second
quarter of the year, it is planned to commence mining operations during the
summer of 2009. If the permits are not issued in time to enable summer
operations, the start of initial production may be delayed to 2010.

Discussions continue with a number of potential purchasers of iron ore product.
There has been a major decline in spot iron ore prices in recent months but the
company expects to sell most of its product based on the annual benchmark prices
agreed between the major suppliers and steel mills. It is likely that these
benchmark prices will weaken somewhat from the highs of 2008. At the end of
September, Labrador Iron held $C43.5 million (£23.0 million) in cash, which is
considered sufficient to take the project through to first production.

Parys Mountain

During the period extensive discussions took place with the Australian company
Western Metals Limited regarding a major investment in the Parys Mountain
project. As previously announced, these discussions were terminated in mid-
October with no agreement being reached.

Prices for base metals and in particular zinc and lead have fallen significantly
during the last three months. Nevertheless the board believes that the Parys
Mountain project, with its asset base still intact and its planning permissions
still valid, is well placed to take advantage of the upturn that is likely to
follow these price falls. In the meantime development work on Parys Mountain
will be maintained at low levels until there are signs of a recovery.

Financial

The loss for the six month period was £444,330 (2007 - £196,435) of which share
based remuneration amounted to £206,156 (2007- nil). Development expenses
capitalised amounted to £76,824 in respect of Parys Mountain (2007 £84,829) and
nil in respect of Labrador (2007 - £168,007); this year the Labrador development
is through an equity accounted associated company in which the group has a 50%
interest. The group has no revenues from the operation of its properties.

Outlook

In common with all other resource companies we are in a very uncertain economic
climate. However Parys Mountain can be maintained on a minimum expenditure basis
with no further significant demands on capital until markets improve. Juno
Limited, the group's major shareholder, has indicated that it intends to
continue its financial support, including making available further cash
advances. Labrador Iron continues to benefit from its strong cash position and
its ability to progress to development. The directors believe that the group is
in a relatively healthy position to ride out the current economic difficulties.

John F Kearney
Chairman
27 November 2008


Consolidated income statement - unaudited
   for the six months ended 30 September 2008

                                  Notes   Six months  Six months  Year ended 31
                                            ended 30    ended 30     March 2008
                                           September   September    represented
                                                2008        2007
All operations are continuing                      £           £              £
    Revenue                                        -           -              -
    Administration expenses                (211,490)   (173,340)      (399,331)
    Equity-settled employee        5       (206,156)           -      (142,723)
      benefits

    Share of profits in                        3,014           -         10,449
      associate
    Investment income                          5,240       8,572         21,970
    Finance costs                           (34,938)    (31,667)       (67,326)
    Profit on deemed disposal                      -           -     11,427,730
    Parys properties fair value    7               -           -      (698,321)
      adjustment

 (Loss)/profit before tax                  (444,330)   (196,435)     10,152,448

    Tax                                            -           -              -

 (Loss)/profit for the year                (444,330)   (196,435)     10,152,448


    Earnings per share
    Basic - pence per share        6          (0.3)p      (0.2)p            6.8
    Diluted - pence per share      6             n/a     n/a                6.7


Consolidated balance sheets - unaudited
                                                30           30      31 March
                                         September    September          2008
                                              2008         2007
                                                 £            £             £
                               Notes
Assets
    Non-current assets
    Mineral property            11      12,803,062   13,908,536             -
      development
    Property, plant and                    204,687      185,102             -
      equipment
    Interest in associate               12,074,012            -    12,068,276
    Deposit                                118,223      115,026             -

                                        25,199,984   14,208,664    12,068,276

    Current assets
    Other receivables                        3,497       39,740         4,519
    Cash and cash equivalents               80,483      603,811       217,968

                                            83,980      643,551       222,487

    Assets classified as held    7               -            -    13,069,019
      for sale

 Total assets                           25,283,964   14,852,215    25,359,782

Liabilities
    Current liabilities
    Trade and other payables             (611,256)    (491,056)      (63,819)


                                         (611,256)    (491,056)      (63,819)

    Net current                          (527,276)      152,495       158,668
      assets/(liabilities)

    Non-current liabilities
    Loan                               (1,510,931)  (1,440,334)   (1,475,993)
    Long term provision                   (42,000)     (42,000)

                                       (1,552,931)  (1,482,334)   (1,475,993)
    Liabilities directly         7               -            -     (464,741)
      associated with
      assets classified
      as held for sale

 Total liabilities                     (2,164,187)   (1,973,390)   (2,004,553)
 Net assets                             23,119,777   12,878,825    23,355,229


Equity
    Share capital               10       7,036,414    7,036,414     7,036,414
    Share premium                        8,092,423    8,092,423     8,092,423
    Equity-settled benefits      5         578,428      229,549       372,272
      reserve
    Currency translation                         -       12,484       (2,718)
      reserve
    Retained profits/(losses)            7,412,512   (2,492,045)    7,856,838

Total shareholders' equity              23,119,777   12,878,825    23,355,229


Consolidated cashflow statement - unaudited
for the six months ended 30 September 2008

                                  Notes  Six months  Six months   Year ended 31
                                           ended 30    ended 30      March 2008
                                          September   September
                                               2008        2007
                                                  £           £               £
Operating activities
    Profit/(loss) for the year            (444,330)   (196,435)      10,152,448
    Adjustments:
    Finance costs recognised                 34,938      31,667          67,326
      in profit or loss
    Investment revenue                      (5,240)     (8,572)        (18,959)
      recognised in profit or loss
    Investment revenue                            -           -         (3,011)
      recognised
      in discontinued
      operations
    Equity-settled employee        5        206,156           -         142,723
      benefits
    Share of profit retained in             (3,014)           -        (10,449)
      associate
    Profit on deemed disposal                     -           -    (11,427,730)
    Parys properties fair value                   -           -         698,321
      adjustment

                                          (211,490)   (173,340)       (399,331)
   Movements in working capital
    Increase/(decrease) in                  124,696    (64,805)           (203)
      payables
    Decrease/(increase) in                   22,192       (950)        (12,168)
      receivables

   Cash utilised by operations             (64,602)   (239,095)       (411,702)

    Interest paid                                 -           -               -

Net cash used in operating                 (64,602)   (239,095)       (411,702)
activities

Investing activities
    Interest received                         3,940       7,622          19,121
    Mineral property                       (76,823)   (239,283)       (445,763)
      development
    Payments for land and                         -           -        (19,585)
      buildings

Net cash used in investing                 (72,883)   (231,661)       (446,227)
activities

Financing activities
    Proceeds from issue of                        -   1,040,564       1,040,564
      shares

Net cash from financing                           -   1,040,564       1,040,564
activities

Net increase/(decrease) in cash           (137,485)     569,808         182,635
Cash and cash equivalents at               217,968      34,003          34,003
start of year
Exchange rate changes on                         -           -           1,330
foreign balances

Cash and cash equivalents at                80,483     603,811         217,968
end of year



Capital and reserves reconciliation - unaudited

                                        Six months    Six months  Year ended 31
                                      ended 30 Sep  ended 30 Sep     March 2008
                                              2008          2007
                                                 £             £              £
     At beginning of period             23,355,229    11,974,033     11,974,033
     Equity-settled employee               206,156             -        142,723
       benefits
     Shares issued for cash                      -     1,040,563      1,040,564
     Currency translations                   2,722        60,664         45,461
     (Loss)/profit for the               (444,330)     (196,435)     10,152,448
       period

Total shareholders' equity              23,119,777    12,878,825     23,355,229


Statement of directors' responsibilities

The directors are responsible for preparing the half yearly financial report in
accordance with applicable laws and regulations.

The directors confirm that to the best of their knowledge, these condensed
financial statements which should be read in conjunction with the annual
financial statements for the year ended 31 March 2008:

    i) have been prepared in accordance with IAS 34 'Interim financial
    reporting' as adopted by the European Union; and

    ii) include a fair review of the information required by the Financial
    Services Authority's Disclosure and Transparency Rules 4.2.7R and 4.2.8R.

The directors of the company are listed in the annual report and accounts 2008
and there have been no changes to the board since its publication. A list of
current directors is also maintained on the company's website to be found at
www.angleseymining.co.uk.

These interim results were approved by the board on 27 November 2008. The half-
yearly results for the current and comparative period are neither audited nor
reviewed by the company's auditors.

By order of the board
Bill Hooley              Ian Cuthbertson
Chief Executive          Finance Director


Significant accounting policies and notes to accounts

1.  BASIS OF ACCOUNTING:  The unaudited interim condensed financial statements
have been prepared under the historical cost convention, on a going concern
basis and in accordance with the accounting policies employed in the 31 March
2008 annual report. Any accounting assumptions and estimates made in connection
with these statements are consistent with those applied in that report. They
should be read in conjunction with that annual report which is available on the
company's website at www.angleseymining.co.uk.

2.  RISKS AND UNCERTAINTIES:  The risks and uncertainties applicable to these
condensed financial statements are the same as those described in the annual
report for the year ended 31 March 2008.

3.  NEW IFRSs:  There are no new IFRSs which affect these condensed financial
statements.

4.  The group is engaged in mineral property development and has no turnover.
There are no minority interests or exceptional items.

5.  EQUITY SETTLED EMPLOYEE BENEFITS:  IFRS 2 "Share-based Payment" requires the
recognition of equity settled share-based payments (which in the case of the
group during the period are for share options only) at fair value at the date of
grant. The fair value of the options expensed in these statements has been
determined by a Black-Scholes option pricing model using a volatility factor of
66% and an option life of 3 years as the significant assumptions.

6.  EARNINGS PER SHARE:  The calculation and reporting of basic and diluted
earnings per share are in accordance with IAS 33. These earnings per share are
computed by dividing the loss attributable to ordinary shareholders of £444,330
(2007 - loss - £196,435) by 152,558,051 (2007 - 144,217,887) - the weighted
average number of ordinary shares in issue during the period. Since there is
loss for the period, diluted earnings per share are not reported.

7.  ASSETS AND LIABILITIES HELD FOR SALE:  In the audited financial statements
at 31 March 2008, the group's Parys Mountain assets, liabilities and operations
were classified as held for sale, and a Parys properties fair value adjustment
was made in respect of a potential impairment in the carrying value of those
Parys assets and liabilities. Since that date and after the termination of
specific negotiations for sale, this classification has been rescinded and the
Parys project is not classified as being held for sale. Following a calculation
of the net present value, discounted at 10%, of the Parys Mountain cashflows
based on the directors' estimates of future metal prices and capital and
operating costs, the directors have decided to retain the Parys fair value
adjustment made in the 31 March 2008 financial statements in these condensed
financial statements and that no further impairment of the value of the Parys
project assets is appropriate.

8.  BUSINESS AND GEOGRAPHICAL SEGMENTS:  All activities relate to the group's
principal activity which is the exploration and development of mining
properties: hence only the geographical segments have been disclosed below.
There are no revenues. From 3 December 2007 the Canadian activities have been
accounted for on an equity basis and from that date are not included in this
table. Previously the Canadian activities were consolidated on a line by line
basis.
Unaudited                            2008                        2007
                               UK  Canada    Total        UK   Canada     Total
Capitalised                     £       £        £         £        £         £
Direct property            76,824       -   76,824    84,829  168,007   252,836
expenses capitalised
to mineral properties

Income statement
analysis
Corporate salaries &       87,851       -   87,851    46,087        -    46,087
related costs
Other corporate costs     123,639       -  123,639   101,291   25,962   127,253
                          211,490       -  211,490   147,378   25,962   173,340
Unallocated items
Equity settled                             206,156                            -
employee benefits
Share of profits in                                                           -
associate                                  (3,014)
Investment income                          (5,240)                      (8,572)
Finance costs                               34,938                       31,667

Loss for the period                        444,330                      196,435

9.  DEFERRED TAX:  There is an unrecognised deferred tax asset of £1.4 million
which in view of the group's trading results, is not considered to be
recoverable in the short term. There are also capital allowances, including
mineral extraction allowances, exceeding £9 million unclaimed and available.
Because the recoverability of any taxation relative to these amounts from future
operations is uncertain, no deferred tax asset is reflected in the condensed
financial statements.

10.  CHANGES IN SHARE CAPITAL:  None.

11.  DEVELOPMENT EXPENDITURE:  Mineral development expenditure incurred by the
group is carried in the condensed financial statements at cost, less an
impairment provision. The recovery of this expenditure is dependent upon the
successful development and operation of the Parys Mountain project which is
itself conditional on finance being available to fund such development.

12. COMPARATIVE INFORMATION:  As described in note 7, the Parys Mountain project
is no longer classified as held for sale. As required by IFRSs, the comparative
information at 31 March 2008 in the income statement has been reclassified and
the balance sheet comparative information has not been reclassified.

13.  FINANCIAL INFORMATION:  This financial information does not constitute
statutory accounts within the meaning of section 240 of the Companies Act 1985.
Statutory accounts for the year ended 31 March 2008 which were prepared under
International Financial Reporting Standards, as approved by the European Union,
have been delivered to the Registrar of Companies. The report of the auditors on
those accounts did not contain a statement under Section 237 of the Companies
Act 1985, was not qualified and did not include a reference to any matters to
which the auditors drew attention by way of emphasis.

14.  POST BALANCE SHEET AND OTHER EVENTS:  None.

15.  RELATED PARTY TRANSACTIONS:  None.


For further information:

Bill Hooley, Chief Executive                 +(44) 1492 541981
Ian Cuthbertson, Finance Director            +(44) 1248 361333

[e-mail]                     www.angleseymining.co.uk